Show Them the Deal
Price your products and services without leaving any money on the table, with strategies from the Inc.com article “Pricing Rules You Need to Know.” As the article explains, people are “weird and irrational” when it goes to buying. Despite the importance of money, they typically don’t know what things are worth and often make illogical purchasing decisions. Here’s how you can take advantage of this type of odd behavior:
Use a Decoy
If people always thought rationally, the only factors that would impact buying decisions would be if they want the item and if it’s worth the price. But realistically, people tend to calculate value by comparing with other options. So, to influence buying decisions, simply change the options. One way to do this is to add a decoy option that is obviously inferior.
Say you’re offering two monthly packages, one more expensive than the other. By adding a decoy option that’s similar to the higher priced option, but noticeably less attractive, you’ll get the customer to perceive increased value in your higher priced offering. Thus, people will tend to choose that option even if it isn’t a much better deal than the lower priced option.
Show Them the Deal
Whenever you discount a product or service, make sure to list the original price, so customers can tell that they’re getting a deal. “A sign saying an time is currently $40 but was originally $48 outsells a sign simply stating an item is on sale for $39,” Inc.com Contributor Jessica Stillman writes. “Even better, according to researchers, is a sign that lists the original price and has a current price ending in nine.”
